Robert Slatt Slatt says new projects can still secure debt at reasonable rates no longer available from traditional banks.

SAN FRANCISCO—Commercial mortgage lending continues to be healthy in 2017, with rates remaining at historic lows compared to the projected increases anticipated earlier this year, according to Robert Slatt, principal with commercial mortgage banking firm, Newmark. As traditional banks adjust to the new federal high-volatility commercial real estate/HVCRE banking regulations, construction financing from life insurers, pension funds and other non-banking institutional sources is on the rise. These loans spread the risk of new construction for extended terms, ensuring new projects can still secure debt at the reasonable rates no longer available from traditional banks, he says.